Full Universal Credit rollout delayed until 2024

The House of Lords’ Economic Affairs Committee has launched an inquiry into the economics of Universal Credit due to its continued delay.

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On Monday 3 February, the Department for Work and Pensions gave reasons for another delay in the number of people who had been moved onto Universal Credit was lower than expected.

The committee will now examine whether Universal Credit is meeting its original objectives and whether the policy assumptions reflected in its design are appropriate for different groups of claimants.

The committee is seeking answers to the following questions:

  • How well has Universal Credit met its original objectives?
  • Were the original objectives and assumptions the right ones? How should they change?
  • What have been the positive and negative economic effects of Universal Credit?
  • What effect has fiscal retrenchment had on the ability of Universal Credit to successfully deliver its objectives?
  • Which claimants have benefited most from the Universal Credit reforms and which have lost out?
  • How has the world of work changed since the introduction of Universal Credit? Does Universal Credit’s design adequately reflect the reality of low-paid work?
  • If Universal Credit does not adequately reflect the lived experiences of low-paid workers, how should it be reformed?

Universal Credit is the biggest change to the welfare system in a generation, bringing together six overlapping benefits into one monthly payment and offering support to some of the most vulnerable people in society.

It is right that we revisit our forecasts and plan, and re-plan accordingly - ensuring that the process is working well for people on benefits.

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Will Quince MP Minister for Welfare Delivery

The committee invites written contributions to its investigation by email at [email protected] along with your name and contact details. The deadline for submissions is 29 February 2020.

Our committee will consider if the original objectives of Universal Credit are still fit for purpose and able to provide adequate and fair social security. We will then make our recommendations to the government in due course.

To inform our work we want to hear from as broad a range of people as possible. If you have a view on Universal Credit, look at our call for evidence and let us know what you think.

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Lord Forsyth Chairman of the Economic Affairs Committee

Universal Credit replaces six existing benefits (Income-based Jobseeker’s Allowance; Income-related Employment and Support Allowance; Income Support; Child Tax Credit; Working Tax Credit; Housing Benefit or Local Housing Allowance). The new system is based on a single monthly payment (rather than every two weeks) paid in arrears directly to a bank account. Payments include all eligible housing costs meaning that claimants will be responsible for paying their rent themselves.

ARLA Propertymark is a member of the Department for Work and Pensions Strategic PRS Landlord Group. We've raised concerns with the Government for some time now over Universal Credit payments not being processed quickly enough, which can cause distress and hardship to claimants, and has also led to some landlords deciding not to rent properties to those in receipt of the benefit.

Resources for ARLA Propertymark members

Universal Credit is being introduced in stages across the UK by postcode area. Use the link below to access the fact sheet.

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09 Nov 2017
Fact sheet: Universal Credit and private rented housing (Scotland)

Universal Credit is a new benefit brought in via the Welfare Reform Act 2012 to support people who are on low incomes or out of work. It is managed by the Department for Work and Pensions.

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09 Nov 2017
Fact sheet: Universal Credit and private rented housing

Universal Credit is a new benefit brought in via the Welfare Reform Act 2012 to support people who are on low incomes or out of work. It is managed by the Department for Work and Pensions.

The Department for Work and Pension (DWP) Guidance

The DWP recently published updated guidance for landlords with tenants in receipt of Universal Credit to help them understand what they can do to help their tenants prepare for the move to the single payment and what support is available.